EUR/USD is up 0.2% to 1.1720
The dollar is softer across the board as the market is coming to terms that there will not be any major taper announcement by the Fed at Jackson Hole this week.
EUR/USD is seeing a decent bounce back above 1.1700 after last week’s technical break threatened a potentially ugly downside move. That now appears to be a case of a false break as we see price recover back above the 31 March and 11 August lows.
Buyers can take comfort in keeping above 1.1700 but looking at the near-term chart:
Price action is now caught in between the key hourly moving averages i.e. near-term bias more neutral, in between 1.1705 and 1.1729.
That defines the near-term direction in the pair as we get the week underway, with both buyers and sellers needing a break on either side to reaffirm their conviction. In the latter’s case, it is more towards maintaining last week’s momentum.
Adding to upside resistance for now is the 23.6 retracement level of the swing move lower from 1.1800 this month, seen at 1.1722.